Target Information

Autry, a rising sneaker brand, has experienced significant growth since its inception. Founded in Dallas in the 1970s and acquired by a group of Italian entrepreneurs, including Marco Doro, in 2019, Autry has transformed from generating revenues of just €3.8 million in 2019 to an impressive €110 million in 2023. The brand, which has focused on high-quality sneaker production and distribution, aims to reach €300 million in revenue by 2026. Quadrivio Group’s Made in Italy Fund had previously acquired a majority stake in Autry in 2021 and will retain an 8% share following the recent majority acquisition.

The recent transaction, signed in Milan, involves the Quadrivio Group, led by Alessandro Binello, and Style Capital, managed by Roberta Benaglia. The deal concluded with the acquisition of 50.1% of Autry, valued at €320 million, highlighting the brand's exponential earnings potential that has outperformed previous market estimates.

Industry Overview in Italy

The Italian footwear industry is recognized worldwide for its emphasis on quality craftsmanship and innovative design. Renowned brands, especially in the luxury segment, have maintained a strong presence in both domestic and international markets. The sector has been experiencing resurgence following the pandemic, with consumers increasingly seeking premium products that reflect both heritage and modern aesthetic values.

Italy is home to numerous labels that produce not only footwear but also a range of high-end fashion items, contributing to the overall growth of the fashion sector. Major players are focusing on sustainability and artisanal techniques to appeal to the eco-conscious consumer segment, driving an upward trend in premium sneaker brands like Autry.

Retail distributions have shifted as brands optimize their presence across channels, including strategic partnerships with luxury department stores around the globe. The limited availability of products at top-tier retailers reinforces the exclusivity associated with brands like Autry, which strategically places them within elite fashion circles.

Moreover, the rise of e-commerce has provided brands with the platform to reach a broader audience while maintaining strong brand identity through curated online experiences. The appeal of Italian footwear extends beyond conventional markets, with increasing interest in Asia, where Autry has recently expanded by opening flagship stores in Seoul, Tokyo, and Paris.

Rationale Behind the Deal

The strategic acquisition of Autry is primarily motivated by its substantial growth trajectory and potential for future expansion. By securing a controlling interest in the brand, Quadrivio and Style Capital can leverage Autry's established reputation and burgeoning global presence to further capitalize on the luxury sneaker market. This synergy allows for accelerated brand-building initiatives and operational efficiencies.

Investing in a company that has consistently outperformed revenue expectations aligns well with the broader market trends favoring premium, Italian-made products. The potential to enhance Autry’s reach while utilizing the expertise and connections of the new investors presents a compelling opportunity for robust returns.

Investor Information

Quadrivio Group is a prominent investment firm known for its focus on the luxury and lifestyle sectors in Italy, particularly through its Made in Italy Fund. The firm has displayed significant acumen in identifying high-potential brands that align with evolving market demands. Their involvement in the fashion sector has marked them as key players in driving sustainable growth and profitability across their portfolio.

Style Capital, led by Roberta Benaglia, is another key entity in the deal, noted for its successful exit from other investments, such as the sale of Zimmermann to Advent International. With a strategic outlook towards emerging brands, Style Capital continues to seek opportunities that maximize value while navigating the challenges of the competitive retail landscape.

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The acquisition of a controlling interest in Autry appears to be a strategic move with substantial potential for returns. The brand's rapid growth and established reputation position it favorably within a lucrative market segment. Experienced leadership, exemplified by Mauro Grange and Patrizio Di Marco, has set the groundwork for an accelerated growth path that could yield significant benefits for investors.

Moreover, the global inclination towards premium, Italian footwear places Autry in an advantageous position to capitalize on expanding consumer preferences. By maintaining a limited distribution strategy and focusing on brand elevation, there is room for substantial increases in brand equity and market share.

However, investors should remain vigilant about potential market fluctuations and competitive dynamics within the luxury sector. The recent shifts in ownership and management structures within key players such as Farfetch should prompt careful monitoring of market conditions that could affect brand performance.

Overall, if managed well, this investment could offer Quadrivio and Style Capital a notable return on investment, leveraging Autry's existing market position and growth potential to bolster their portfolio sustainably.

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